Aug 22, 2026
Attracting foreign investment is important, but ensuring that it creates lasting and broadly shared benefits is also a major challenge. Investment facilitation can make it easier for foreign investors to operate and expand businesses by providing one-stop portals, digital services, streamlined procedures, and better access to information.
APEC introduced the Investment Facilitation Action Plan (IFAP) in 2008 to create a more favorable investment environment across the region. By 2024, more than half of the world’s top ten destination and source economies for foreign direct investment were APEC economies, while greenfield investment in the region reached USD 595 billion. Several APEC economies also participate in initiatives such as the Investment Facilitation for Development Agreement, which seeks to make investment processes more transparent and efficient.
The investment environment is changing as economic success is increasingly associated with the quality of growth, including how benefits are distributed, sustainability, and environmental impact. Investment agreements are also evolving by including provisions related to regulatory transparency and environmental commitments. At the same time, global foreign direct investment fell by 11 percent in 2024 for the second consecutive year, while investment in intangible assets such as software and research and development increased by nearly three percent between 2023 and 2024.
The digital economy has become an important driver of investment. Growing demand for artificial intelligence infrastructure and cloud computing has contributed to investment in data centres in economies such as Malaysia and Thailand. Nineteen of the world’s top 20 digital and ICT enterprises are from APEC economies.
In 2025, APEC enhanced the IFAP to respond to changing global conditions, evolving standards, and investors’ needs. The updated plan places greater emphasis on responsible business practices and sustainable growth. Its three main areas are improving access to essential investment information, streamlining foreign investment policy processes, and reducing the costs and risks associated with foreign investment.
APEC economies are already applying these principles through digital platforms that improve access to investment information and transparency. E-systems can also make investment applications and procedures more efficient and predictable. Some economies are encouraging connections between foreign and local companies, as well as opportunities to engage with academia, helping foreign companies better understand regional investment environments.
However, challenges such as corruption, regulatory gaps, and insufficient stakeholder participation can limit progress. Small businesses and disadvantaged groups can also face complicated procedures and limited support. Expanding access to digital tools and building capacity can help create a more diverse and resilient investment environment.
Continued innovation, implementation, and evaluation of investment facilitation measures will be important for achieving quality growth. Investment single windows, which allow businesses to submit and track applications through a single digital platform, can reduce delays and improve transparency, although they require funding, technical capacity, and coordination between government agencies. Continued cooperation can strengthen regional competitiveness and innovation while supporting broad-based and sustainable growth.
Reference
Investment Facilitation for Quality Growth | APEC. (s. f.). APEC. https://www.apec.org/press/blogs/2026/0826_investment